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Schuyler Crossing complex to receive 30-year tax abatement

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The developer of a new 150-unit residential complex slated for the intersection of Bergen and Schuyler avenues in Kearny, seen in these renderings, is poised to receive a 30-year tax abatement from the town.

KEARNY — The developer of a new 150-unit residential complex slated to rise at the intersection of Bergen and Schuyler avenues is poised to receive a 30-year tax abatement from the town.

The PILOT (payments in lieu of taxes) requires Russo Development Company to pay the town $375,000, the equivalent of $2,500 per residential unit, in its first year. The PILOT will be re-set every five years for inflation and has a provision allowing adjustments if the state changes its 2 percent property tax limit.

The agreement would also require the developer to make a one-time $225,000 contribution to the town’s affordable housing trust fund, according to Town Attorney Gregory Castano. Russo Development currently pays $81,559 annually in taxes.

Kearny’s governing body on Tuesday introduced an ordinance detailing the agreement, which will have a final vote at a special meeting Dec. 23.

Dubbed Schuyler Crossing, the $33 million project will include six three-story buildings with 75 one-bedroom units and 75 two-bedroom units. The development will also include a clubhouse for use by residents.

Edward Russo, president and chief operating officer of the development firm, said the PILOT is necessary because the state cancelled plans to construct a new rail station on Bergen Avenue, lowering the rent potential for Schuyler Crossing.

“Without a meaningful abatement of real estate taxes, the project would not be economically viable,” said Russo, who noted that his firm expects to rent the units for between $1,600 and $2,400 a month. He expects construction to begin this winter.

Mayor Al Santos hailed the project as having “exciting potential to transform that borderline industrial area into something much more.”